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JAKARTA - Minister of Finance Sri Mulyani stated that the government will pay subsidies to PT Pertamina (Persero) and PT PLN (Persero) with a frequency of three months starting in 2023. The decision is different from the mechanism so far, which has to wait until the end of the year and get the results of the audit to pay for the subsidy. "This is so that cashflow or cash flow in Pertamina and PLN, as well as in terms of accuracy, our state budget's reflection becomes more credible," Sri Mulyani said in a working meeting with the DPR's Budget Agency in Jakarta, reported by Antara, Wednesday, September 15. As for the agreement of the Working Committee A Banggar DPR, there will be a slight change in the allocation of energy subsidies in 2023, which is due to changes in the exchange rate from Rp. 14,750 per US dollar to Rp. 14,800 per US dollar. Sri Mulyani explained that overall there will be an additional Rp1.3 trillion of energy subsidies next year, from Rp210.7 trillion set out in the 2023 State Revenue and Expenditure Budget (RAPBN) plan to Rp212 trillion. However, this figure does not include compensation funds that will also be paid to Pertamina and PLN. The State Treasurer detailed that the subsidy budget consisted of an increase in fuel oil subsidies (BBM) and 3-kilogram (kg) LPG of Rp1.1 trillion from Rp138.3 trillion to Rp139.4 trillion and electricity subsidies which rose Rp200 billion from Rp72.3 trillion to Rp72.6 trillion. The fuel and LPG subsidies include subsidies for certain types of fuel, which increased by Rp600 billion from Rp20.9 trillion to Rp21.5 trillion and 3 kg LPG subsidies, which increased by Rp400 billion from Rp117.4 trillion to Rp117.8 trillion. "In this allocation, we have also included a reserve of one million kiloliters for diesel and LPG of 500 thousand metric tons," said Sri Mulyani.

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